No Credit Card? UPI & Loans Build Your CIBIL Too
Credit cards are not the only way to build a credit score in India. Most Indians are now getting loans and using UPI-based credit, which also shapes their CIBIL score — for better or worse.
India has fewer credit card holders than people who own a car — about 5 crore each.
Most Indians are building credit through loans and UPI — not cards
Key Takeaways
Check your CIBIL score for free at cibil.com or through your bank app — even if you've never owned a credit card.
If you have an active personal loan or EMI, pay every instalment on time — each on-time payment directly boosts your credit score.
Ask your bank if you are eligible for a UPI Credit Line or pre-approved personal loan — these are now valid credit-building tools recognised by CIBIL.
Credit cards are not the only way to build a credit score in India. Most Indians are now getting loans and using UPI-based credit, which also shapes their CIBIL score — for better or worse.
Here's what happened: Only about 5.2 crore Indians hold a credit card — just 25% of all credit-active consumers in the country.. First-time borrowers make up only 8% of new credit card issuances, meaning most new cards go to existing credit users.. Personal loans and UPI-linked credit products like UPI Credit Line are increasingly the first credit product for new borrowers..
What you should do: Check your CIBIL score for free at cibil.com or through your bank app — even if you've never owned a credit card.. If you have an active personal loan or EMI, pay every instalment on time — each on-time payment directly boosts your credit score.. Ask your bank if you are eligible for a UPI Credit Line or pre-approved personal loan — these are now valid credit-building tools recognised by CIBIL..
A single personal loan repaid on time over 12 months can push your CIBIL score above 720 — the threshold most banks use to approve low-interest loans.
Check Your CIBIL Score
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- [1]“UPI and personal loans are replacing credit cards in Indians' wallets: CIBIL” mint - money · 8 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.